Costa Rica living and retirement information for baby boomers, retirees, or people wishing to relocate to Costa Rica - expert advice
Since you have to pay import duties on your household goods and there are many details involved when getting them through customs with as little duty to pay as possible, we recommend you to contact Mr. Edwin Obando at West International Movers (WinMovers). Of course there are many other moving companies but we have worked successfully with Winmovers for over 15 years and they do a great job. It is important to contact him before you even start packing since you’ll have to pay import taxes on your household goods when they come into the country, but he will give you the full instructions so that you pay as little as possible.
E-mail: winmovers@racsa.co.cr or eobando@winmovers.com or call +506-215-1585. Website: http://www.winmovers.com/
Some tips on how to organize yourself before moving:
- Gather moving supplies, boxes, tape, rope.
- If moving far away, make any necessary travel arrangements like airline, hotel, and rental car reservations.
- Call a moving company or make truck rental reservations to move yourself.
- Finalize real estate and apartment rental needs.
- Place legal, medical, and insurance records in a safe and accessible place.
- Give your mailers your new address :
- Friends and family members
- Banks, insurance companies, and other financial institutions
- Charge card and credit card companies
- Doctors, dentists, and other service providers
- State and Federal Tax authorities and any other government agencies as needed.
- Save moving receipts (many moving expenses are tax deductible).
- Make maps of your new neighborhood to familiarize yourself and your family with your new area.
- Plan your moving budget
- Inform gas, electric, water, cable, local telephone and trash removal services of your move. Sign up for services at your new address.
- Inform long distance Phone Company of your move.
- Recruit moving-day help.
- Confirm travel reservation.
- Arrange to close or transfer your bank account, if appropriate.
- Set aside moving materials like a tape measure, pocket knife, packing boxes, tape and markers.
- Pick up rental truck.
- Check oil and gas in your car.
- If traveling, make sure you have tickets, charge cards, and other essentials.
- Keep the following supplies and accessories on hand:
- Boxes, all sizes
- Bubble wrap or other cushioning material
- Marking pens
- Tape measure
- Furniture pads or old blankets
- Packing tape and scissors
- Money and credit cards
- Label each box with the room in the new home to which it should be delivered.
- Make an itemized list of what you’re packing with a yard sale price on each item, so you don’t have to pay too many taxes when your household arrives at Costa Rican customs.
- Number the boxes and keep a list of what is in each box.
- Clearly mark fragile items.
- Pack a bag of personal items you'll need during the move (change of clothes, toiletries, medicine, maps, food, and drinks). Keep it in an easy-to-find place when you pack.
- Keep a medical kit accessible.
- If you have children, pack a bag of games and activities for the trip.
- Locate police and fire stations as well as hospitals and gas stations near your home.
- Scout your new neighborhood for shopping areas. You may need furniture, tools, or house wares unexpectedly.
- Call your GoDutch realtor to find out which day the trash is collected. Also ask whether your new community has recycling programs.
- Seek out new service providers such as a bank, cleaners, and veterinarian.
- Call your realtor for helpful information on: Schools, Cable service, Cultural events and community activities and Availability of emergency calling services, such as 911
- Provide your new doctor and dentist with your medical history. You may need to request your file from your previous doctor/dentist.
- Transfer insurance policies to an agent in your new community. You may also wish to make a detailed list of your belongings, their value, and your coverage.
- Give your new home a good cleaning.
- Moving can be stressful. Watch for effects on family members and pets so you can give comfort and a helping hand.
You can check easily what it would cost you to move your household and compare cost between moving companies:
http://compare-international-movers.com/
by Jorge Segura Mora, MBA
Maybe you woke up one morning and said, “Honey I want to go to Costa Rica!” Or maybe you are a business person who just decided to check out the opportunities in that beautiful place where you vacationed last summer. You came, and you saw; talked to our people, drank and ate our food, enjoyed our beaches and volcanoes, shared with foreign residents and tourists, checked out the potential opportunities, and now you are in love with this country… what to do, what to do! Well, first of all congratulations, you have chosen the right place to fall in love with; and secondly, do not worry, what you are experiencing is the reason why thousands of foreigners from all over the globe are living and doing business, or have retired, in Costa Rica. So many people cannot be wrong, but, is it right for you?
Considering the possibility of establishing a secondary residence, retiring, or doing business in Costa Rica, is a life changing decision. One that can potentially improve your quality of life, or your investment portfolio; even if this is on paper just “another” developing country. Therefore, as any foreign resident, or investor, who once was in your position would tell you; if you are going to do it, do it the right way, and surround yourself with the right people who can assist you, and unconditionally be there for you during this new venture. We hope that this article can assist you in finding your way.
Like any other mayor decisions in your life, coming to live or do business in Costa Rica has particular challenges, which you should know and be conscious about; so that you can understand where your worries and fears are coming from and how to handle them. They might not surprise you, especially if you have lived abroad before, but it is important to consider the fundamental challenges that you are starting to face.
It is the most important challenge faced by foreigners, one that, due to emotional implications, can easily bring down business opportunities, the closing of a house purchase, as well as your hopes and dreams. However, uncertainty is present in every major decision and can be very positive. It will be always present because the results are unknown; and it can be very positive because as in the past, it will drive you to seek out the right path to implement your decisions. Now, the uncertainty may feel higher this time, which is only logical since this decision will not only affect your life, but will imply executing it in a different country; far from the comfort of home, friends, family, your personal advisors and financial planners.
The key to deal with this uncertainty is to be conscious that it exists, and be clear with regard to what it is that you want to achieve in Costa Rica. Once you have done it, and before you make the first contacts in the country, design a plan to achieve the goal, stressing in particular those areas that create most uncertainty, or make you feel afraid. With this simple tactic, you will obtain first knowledge of what needs to be done, and of which areas you are going to need local assistance.
Costa Rica is one of the nicest places to live, full of personal and business opportunities for those who are willing to take the challenge. That is why there are so many foreign residents retiring, living and doing business in here. The people are peaceful, friendly, the weather can be spectacular, and overall life is good; especially for foreigners whose income and savings are denominated in Dollars and Euros. However, those beautiful traits come along a simple reality; this is a developing country, one that faces challenges innate in its condition. Therefore, you should consider this fact when coming to Costa Rica, and that the “high returns” you are looking for your quality of life, or business portfolio, will have the risks associated to a developing country. Thus, the implementation of your decision will require good care, as well as the right amount of planning and advice.
For many years now, your lawyer, financial planner, portfolio manager, realtor, or even your brother-in-law have assisted you in taking the most important decisions of your life. Which college to send the kids, where to invest, when to buy a house, how to open a new business, and when to refinance a mortgage, are amongst the decisions that you may have looked for advice in the past. When taking a major decision such as retiring, purchasing a second home or doing business in Costa Rica, your advisors back home will have limited information to help you out, unless they have ties to Costa Rica. So, consider their advice, since throughout the years they have shown their concern for your well being, but be clear that once you are in Costa Rica, you will require further assistance from those who have done it before, and who have helped out other people and companies that came to this country.
If there is a good advice for whoever is coming to our country: be open minded! You do not need to prepare for any outrageous behavior of the locals, or anything of that fashion, since the locals are fairly conservative people in comparison with more developed societies. However, the “Ticos” have their proper way to see life, one that may surprise you and test your patience in terms of how easy going and carefree some of them might seem to you. Ticos love their country, and their way of life; so a key to your success is the ability to be open minded and respectful of the local culture. Do this and you will see how things start going your way. This does not mean that you cannot demand quality from your local advisors and suppliers, or that you will not find it; on the contrary, the right attitude will provide you the service and respect that you need and deserve.
You know them; you have seen or at least heard of them. They have been the cause of nightmares for friends and family in your country of origin, they are also the theme of the horror stories that someone told you in a plane, or restaurant. Yes! We are talking about crooks, and they do walk among us. Do not be surprised, this is a breed of individuals that have no concern for the well-being of their fellow humans, and sadly enough they are part of all societies. So, even if Costa Rica is your dream country for living, retiring, or doing business, you must be aware that here too, there are unscrupulous people willing to take advantage of the unprepared. And yes!, some of them are as well dressed, educated and charming as you are. To deal with this situation just take the same measures that you have taken back home; be mindful who you deal with, and seek proper advice. Also remember, that despite the good opportunities that you may find in a developing country; in Costa Rica, as in USA, Europe or China, if something sounds too good to be true, it probably is.
Attempting to undergo a mayor life changing decision such as relocating or investing in Costa Rica, without proper support or advise, can be stressful, and a threat to your initial goal. If you have not done something like this before, seek assistance and advice; otherwise prepare yourself to deal alone with all cultural and practical, situations, problems and details involved in your relocation or investment. Yes, you may well have the capacity to face those issues, but be sure that, experience as well as technical and cultural knowledge will make a difference, and the investment you make is well worth your peace of mind. So, be the head or your own herd, by selecting and directing your local support team –professional advisors- towards the achievement of your personal or business goals in Costa Rica.
Yes! It is true, you will face cultural shock. No matter where you come from, things will seem different, some better some just worse. There are three things you must remember to survive, and even enjoy the cultural shock: 1) Always remember why you choose Costa Rica over other places, it will always be there. 2) Be patient and have a good sense of humor, and 3) Be mindful that this is just the phase before you find emotional stability in your new life, so it will pass.
One of the most surprising challenges arises back home, even before you decide to come to Costa Rica to live or invest. Even if you and your spouse, or business partner agree on the basic decision of relocating or investing in Costa Rica; you must understand that the concerns and reactions may vary substantially. The reason is simple, we all have our personal fears, and life experiences, that consciously or unconsciously can make us react differently to different situations. So, at any moment it may seem that your spouse or business partner is being unreasonable or dissenting with a decision, when in reality he/she is only expressing some of the same underlying concerns that you are facing. The key to succeed during this period is to be mindful, and understanding. This will make your life easier and increase the success of your venture.
As you can see your decision is surrounded by challenges, now you should surround yourself with the right group of people. Who is going to be your entry contact into this wonderful land? If you are planning to buy a second house or retire in this country your entry contact must be a professional realtor, but, if you are planning to do business in the country, you will require a financial advisor and/or a lawyer.
Selecting the entry contact is the key to any venture in this country, since this is the person who will guide you and assist you during your arrival, and also this is likely the person who is going to direct you towards the local professionals who will become your support team. Therefore, the selection of the entry contact is among the most important decisions you will make when coming to Costa Rica. Hence, whoever you select as your entry contact, be sure that he/she has the ethics, business philosophy and business structure that you need. Also, make sure that you and your spouse, or business partner trust that person and his/her advise.
The support team is formed by those people, or firms, that will assist you in your decisions, either by advising you, consulting for you, looking for solutions, or by executing your orders. You can form your support team through the advice of your entry contact. That is why the organization, structure and reputation of the entry contact are so important. By gaining access to the right entry contact, and creating your support team, you will have the tools needed to succeed in your venture.
Is it going to cost you more than just coming to Costa Rica and start doing things by yourself? That is a qualified no, since this strategy will allow you to hedge your risks, and can even cost you less in professional fees. Remember also, that no matter what you come to do, it is likely that you will still need the same professionals (lawyers, realtors, financial planners and advisors), so the question is, do you want them working as a team towards the same goal?
Of course, in Costa Rica as in your country of origin, the right advice and service have a price; but that is no news to you. What may cheer you up, is that whoever you select as your entry contact, it is very likely that he/she has already identified, in the local market, a team of highly qualified professionals that can help you achieve your immediate and long term goals.
Nevertheless, the decision of who you trust will always be yours. Good and trusty advisors are hard to get, but those that exist are willing to serve and assist, unconditionally, the equally good clients. Consequently, since you are paying for their services, you are entitled to pick and choose. Here are several items you should take into account, before choosing a local professional as part of the team that will assist you in your venture:
- When contacting a professional be clear about your intentions. If you contact them to seek advice or solutions let them know when you make the appointment, the same applies if you just want to interview them because you are considering using their services.
- When receiving a recommendation or talking for the first time with a professional, realtor, financial planner, lawyer, etc., make sure they know and understand their business.
- Express your short term and long term needs and goals clearly.
- Once you have met the professional and his/her firm, evaluate if you can trust him/her.
- Make sure that the experience and business ethics of the professional satisfy your expectations. Also, pay attention to which the professional is more oriented, serving the client or getting a check.
- Make sure you understand the organization, and structure of the firm or person, as well as how exactly such structure will be helpful to your needs.
- Be conscientious about your payment capabilities. You may be successful at negotiating some fee structures, but not the per hour fees. In the end it will always be a trade off, but what really matters is that you get the service requested, with the quality that was offered to you, at the price agreed.
- Make sure you understand the price structure and conditions, and that there are no hidden costs in the service.
- Always go with your instinct, beyond organization, resources and nice words. If you do not feel comfortable just look somewhere else.
Go beyond the first deal; foresee the future scenarios and the kind of assistance that you are going to need in Costa Rica. This will save you the inconvenience of continuously changing financial advisors, lawyers etc. Establishing long term relationships with your support team is a concept that, as a foreign resident or investor, you should consider. With this approach, you will have at your service: 1) High quality advisors that appreciate you as a person, and know your underlying needs and motivations. 2) People willing to assist you at any moment and in any situation. 3) Honest professionals who will not hesitate to offer you a new trusty contact for a particular need.
Initially, your support team of professionals will be comprised of a realtor, a financial planner or consultant, and a lawyer. These are the same type of professionals that you have used in your country of origin, therefore, choose wisely.
Choosing wisely involves four key issues: knowing your needs, knowing which professionals you require, trusting your instincts, and obtaining the right information. The first three items are up to you, and will be achieved just by knowing yourself and your intentions in the country. For information regarding the kinds of professional assistance that you will require your own entry contact can assist you and the potential candidates themselves can also help. When selecting professional advisors or consultants of any kind, you should obtain and consider the following information:
- Formal and trade education.
- Organizations to which the professional is affiliated.
- Professional experience of the firm, and of the professionals that will be serving your needs.
- Business referrals.
- Technical knowledge and market savvy.
- Ability to listen and understand your needs.
- Knowledge of their own business.
- Advisor’s external support team.
- Fee structure.
With regard to the fee structure, it is likely that you will be charged for professional services a per hour fee, a monthly retainer fee, or a combination of both, whenever advising and planning is involved. However, when structuring and negotiations are involved, it is likely that the fee will be composed by a retainer fee and a success or completion fee, depending on the task. Referral fees are acceptable in the local market when two conditions are met: 1) Independence of mind, and 2) Absence of conflicts of interest.
Someone once said that Costa Rica is “A coffee plantation with lights”, meaning that this is a very small country in which everything is eventually known, and this is true. Consequently, clients as much as professionals need to take care of their reputation, since in Costa Rica good professionals are known as well as the bad ones, the same goes for the clients. No self-respecting client will go to a professional of doubtful reputation. In the same way, no good professional will accept as a client someone of questionable name.
Once you are here, it will take you several months, if not years, to fully manage all the intricacies involved in living and/or doing business in Costa Rica. Therefore, once you have your support team in place, work with them, and demand from them the best possible service; so that you can achieve stability and peace of mind in the short and long term. Costa Rica is a beautiful country, with a beautiful culture, thus, enjoy it, and surround yourself with the right people so that you never feel defenseless.
Finally, welcome to Costa Rica, you have made a wise decision by choosing our country. Now is time to implement it, and be sure that you will find nationals, and foreign residents, capable and willing to help you achieve your goals.
MBA Fin. Jorge Segura Mora
President and CEO of DCL Consultores S.A.
DCL is a local consulting firm specialized in advising and assisting foreign citizens, and corporations, coming to Costa Rica for personal or business purposes. Mr. Segura is a Fulbright Scholar, with a Bachelor Degree in Business and Finance from West Virginia University; as well as a Chevening Scholar, with an MBA in Finance from City University of London. He is a member of the American Finance Association, the National Association of Individual Investors, and the Global Association of Risk Professionals.
